Nayib Bukele declares that the US dollar is extinct and that Bitcoin is the currency of the future.

El Salvador’s President, Nayib Bukele, has declared his admiration for Bitcoin once more. Bukele boldly declared in a tweet that the days of fiat money may be coming to an end and that Bitcoin is the “true revolution” that the world is now witnessing. Bukele further stated that El Salvador is at the forefront of the Bitcoin age.

El Salvador’s President remarked on Twitter on Friday that the “Bitcoin Experiment” has only resulted in the globe adopting the cryptocurrency for good. He stated that it needs to be seen what influence Bitcoin acceptance would have on a nation’s economy. If all goes well, he predicts that the days of fiat money will be ended shortly.

Bukele has sparked worries about the viability of current physical money throughout the world by aiming his views towards fiat money currently.

Because Bitcoin is entirely digital and decentralized, it has the potential to achieve levels of acceptance much above those seen with any other money. All it needs to do is demonstrate that it is superior to fiat for a country’s economy.

Of course, for most of us right now, this is all a bit far-fetched. But not for Bukele, who has ensured that Bitcoin is recognized as legitimate money in his nation. He sees it as a solution to help El Salvador’s pandemic-ravaged infrastructure. More specifically, they view it as a way to save around $400 million in fees charged by investors and credit entities on cash sent to El Salvador by foreigners.

El Salvador purchased 400 Bitcoins when it legalized Bitcoin in September, with the intention of purchasing more in the future.

It has kept its word, with its bank presently holding well over 1,000 bitcoins. El Salvador also put over 200 Bitcoin teller machines around the nation and provided incentives to residents who accept the cryptocurrency in order to encourage its adoption.

El Salvador will be used as a case study in the near future.
While the country’s leadership is enthusiastic about Bitcoin, foreign organizations are afraid of it. El Salvador has received many warnings from experts since legalizing Bitcoin, advising the nation to abandon its endeavor. The apparent explanation is that Bitcoin is just too volatile to serve as a national currency.
Among the naysayers are organizations like the International Monetary Fund, which recently criticized El Salvador’s decision to accept Bitcoin as legal cash. According to the IMF, the action created serious threats to “consumer protection, financial integrity, and financial stability.”

Even Salvadorans objected to the decision when it was made.

Thousands of Salvadorans marched in protest in El Salvador’s capital, blowing off fireworks in front of the Supreme Court building. The location of the rally was then heavily militarized by police.

Despite the pressure, Bukele remains incredibly bullish about Bitcoin, and things appear to be going his way for the time being. El Salvador has purchased Bitcoin for the treasury on a regular basis since its formal adoption, generally when its price falls. With the ensuing rise in the price of Bitcoin, the country has been able to realize significant returns on its upfront outlay.

El Salvador has declared intentions to create 20 “Bitcoin Schools” and other similar initiatives using the proceeds. Bukele’s grand ambition is to build the world’s first “Bitcoin metropolis,” which will be funded by Bitcoin-backed bonds.

The metropolis will be built in La Union’s eastern section and will be fueled by geothermal energy from a volcano. Except for the value-added tax, the city would not impose any taxes as a result of this (VAT).

So it’s simple to see why Bukele is so passionate about the advantages of using cryptocurrencies such As bitcoin. Only time will tell whether it is the best decision for a country.

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